2. Eligibility of Membership

A company is eligible for membership of the Association provided it has satisfied the Membership Committee of the Association:-

1. that the principal business activity of the company applying for membership is the activity of insurance broking. Other business which are, in the opinion of the Committee, related to and consistent with the business of insurance broking, are permissible;
2. that the company is under the direction and supervision of a designated individual who is a chief executive as defined hereunder and who is a full time director or full-time employee of the company and that the company is controlled by fit and proper person at all times;
3. that the company is a registered business situate in Hong Kong;
4. that the name of the company is not likely to deceive;
5. that the company shall have a paid up capital of not less than HK$100,000.00, and the company shall have a net asset value of not less than HK100,000.00;
6. that the company maintains adequate accounting records to reflect the transactions of its businesses;
7. the member shall maintain a professional indemnity insurance policy with a minimum limit of indemnity for any one claim and in any one insurance period of 12 months, of a sum equal to two years' annual brokerage of the member or HK$3,000,000.00 whichever is the greater, and the policy shall include provision for one automatic reinstatement to a limit of indemnity of not less than HK$3,000,000.00 if as a result of a claim(s) the indemnity available shall fall below HK$3,000,000.00;
8. the member shall maintain Nominated Accounts in accordance with the following rules:-
   1. funds deposited into Nominated Accounts shall only be used in making payments to the party to whom the funds are due;
   2. no member shall use a Nominated Accounts to secure any other facility with any bank or other financial institution;
   3. interest receivable on Nominated Accounts shall belong to the member, and may only be withdrawn from the Nominated Account once funds have been credited to that Nominated Account by the bank;
   4. the member will be responsible for all bank charges that may be payable on any Nominated Accounts, and not less than quarterly, shall transfer from the member's own funds sufficient money to reimburse such charges incurred on a Nominated Account;
   5. within six months of the close of the financial year of a member, its auditors shall provide certification that all monies due to third parties have been deposited in Nominated Accounts and that no monies have been paid out other than in accordance with this Regulation;
   6. funds held in Nominated Accounts may be denominated in any currency but may not be used for the purposes of currency speculation.

Chief Executive

A chief executive is a person who, by application, has been listed in the register of the Association. Only persons whose names are on such a register for the time being shall be allowed to act as a member's representative to the Association.

Eligibility of a person to be a chief executive

Any person shall be eligible to apply for registration as a chief executive provided he/she has satisfied the Association:-

1. if he/she holds an insurance qualification approved by the Association and that he/she has a minimum of two years experience occupying a management position in the insurance industry;
2. if he/she holds no insurance qualification, that he/she has a minimum of five years relevant experience in the insurance industry of which two years is of executive level;
3. that he/she has attained a minimum education level of Form 5 standard;
4. that he/she is a fit and proper person and has always, in the opinion of the Association, complied with recognized ethical standard in his/her business dealings, and has not been convicted of any criminal offence, or has not been adjudicated bankrupt or wound-up by the Court, or found guilty of misconduct by a professional body to which he belongs or by the Association in breach of guidelines and regulations which may be from time to time determined by the Association concerning the conduct and integrity of the members;
5. that he/she is a resident in Hong Kong and is at least 21 years of age;
6. that he/she is appointed or employed by a member company of the Association at the time of application to be registered as chief executive.